Union Investment sells two office properties in Mexico City

Union Investment has completed the sale of two office buildings in Mexico City, Montes Urales I and Montes Urales III, to Mexican real estate company Inmofin. The transaction value has not been disclosed.

Montes Urales I has been held in the UniImmo: Europa open-ended real estate fund since 2006, while Montes Urales III has formed part of the UniImmo: Global portfolio since 2007.

According to Union Investment, market conditions in Mexico City have improved in recent years. “Leasing momentum has significantly improved over the last two years and with that, investor demand for well-located and high-quality office properties has increased substantially, especially in Mexico City,” said Tal Peri, Head of Investment Management U.S. East Coast and Latin America at Union Investment. “After a holding period of 17 and 16 years respectively, we have therefore decided to take advantage of this positive market momentum to sell these two assets and rejuvenate the fund portfolios.”

Both properties are located in the Lomas submarket, one of the three core office submarkets within Mexico City’s central business district. The area is home to a number of international occupiers, including companies such as Google and Oracle.